Season's Greetings

To our many clients and subscribers, we would like to
thank you for the opportunity to serve you over the last twelve
months. We wish you and your family all the best for the coming
year. In lieu of physical holiday cards this year, a significant
contribution was made to the United Way from your investment team at
ScotiaMcLeod. Do visit our recommended Site of
the Month to learn more
about Scotia's involvement in our communities.

There is some encouraging market news as we head into
the holidays. According to Morningstar,
in November,
95% of funds increased in value, even those in the embattled technology
sector. Hopefully, December will continue the trend. Please
accept our warm regards for the holidays.

Annual Labour Funds Report

Once the holidays are over, we as Canadians will be
right into the thick of RRSP season again.

While advertising and hype will likely be down from
recent years' levels, the fact remains that the RRSP will still be the best
place for Canadians to get a tax break.

And the second best place to
get tax savings? Well, Labour Sponsored Investment Funds (LSIFs) will again
be worth considering.

The major labour funds from companies like Vengrowth are
still there and the longest running fund Working Ventures is now being run
by Growthworks, managers of the Working Opportunities funds. Sector
specific funds like E2 that specialize in areas like alternative energy
are attracting interest, as are new funds run by experienced teams like
the Lawrence Enterprise Fund. Finally, two balanced
funds will be available
that promise a tax break today and full repayment of your capital 12 years
later.

Please contact us to determine if LSIFs are right for
you this year, and for recommendations on specific funds.

Bond Quiz: Rates Fall, My Bond Fund's Value
Will...

In both Canada and the US recently, a majority of investors failed to
correctly answer quiz questions about basic investment topics. One
of the questions that tripped up many people had to do with interest
rates. In case you are asked the question in the near future, please
note that there is an inverse relationship between interest rates and bond
prices.

For example, if rates fall further, bond prices or a bond fund's value
will increase. For a quick example on how stripped bonds fare in rising
or dropping interest rate environments, please see our Stripped
Bond Market Value Example, part of our Bonds
Page in our Investor Learning
Centre. (Note, Canada Savings bonds are a simpler kind of bond,
and have a fixed rate, and do not fluctuate in value.) At this time,
rates of over 6% are available on longer term government bonds.

Recommended Reading - The Sterling Report

This month, we suggest you read CI
Fund's Sterling Report. Bill Sterling, who manages the CI
Global Fund, writes about Iraq, Oil and the Economy
in his 2003 outlook. The views are very American in nature, but
answer questions we are often asked about the future and the looming war
in particular.

Like any outlook for the future, he admits that they
will not be 100% accurate. He does make a good point in a quote
though that "It is far better to foresee even
without certainty than not to foresee at all." The
document is also
available as .pdf file.

News - RRSP Limits Rising?

The Investment Funds Institute reports that the House of Commons Finance Committee in their
pre-budget report in November 2002 is looking at raising RRSP limits to
$19,000. Please view the full IFIC report here, and stay tuned for details should this good
news indeed come to pass.

Over the last year, we have profiled several of our team
in an effort to provide a more personal face to the names on your
statements.

As a Director of ScotiaMcLeod, the editor of the Mutual Fund Reporter for the last 12
years, and the first name on your monthly statements, you likely
know a great deal about Carl's opinions on the market. Here is a bit
more about him personally.

Carl graduated from System's Engineering in 1989 and
earned his MBA in 1990. For the last 9 years he has been a member of
the firm's chairman's council, which recognizes the top 5% of
ScotiaMcLeod advisors. Carl was one of the first members of
ScotiaMcLeod's private client advisory board, which works to promote
client interests at the firm.

Carl is responsible for overall asset allocation and
investment direction on client accounts. His team of 9 are always
available to help answer questions and meet with you regarding your
account.

Carl is married to a fellow engineer and has 3 children.
Carl has been involved with several not-for-profit organizations over the
last decade. Recently, Scotiabank chose to highlight his volunteer efforts
with one, the Georgian Bay Land Trust. (see recommended
site link, below).

For more information about Carl and the rest of your
team, please visit the About Us
section of the website.

It is a pleasure to work for an organization that, while
still being highly financially responsible, recognizes the importance of community involvement and volunteerism.
All the best for you and your community for 2003.

® Registered trademark of The Bank of Nova Scotia, used under licence. ™ Trademark of The Bank of Nova Scotia, used under licence. Scotia Wealth Management™ consists of a range of financial services provided by The Bank of Nova Scotia (Scotiabank®); The Bank of Nova Scotia Trust Company (Scotiatrust®); Private Investment Counsel, a service of 1832 Asset Management L.P.; 1832 Asset Management U.S. Inc.; Scotia Wealth Insurance Services Inc.; and ScotiaMcLeod®, a division of Scotia Capital Inc. ("SCI"). Wealth advisory and brokerage services are provided by ScotiaMcLeod, a division of SCI. Insurance services are provided by Scotia Wealth Insurance Services Inc., the insurance subsidiary of SCI. When discussing life insurance products, ScotiaMcLeod advisors are acting as Life Underwriters (Financial Security Advisors in Québec) representing Scotia Wealth Insurance Services Inc. SCI is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada.

The Spiess McGlade Team is a personal trade name of Carl Spiess and Allan McGlade.